Required: 1. Prepare a vertical analysis of Fantasy Football\'s 2015 and 2014 ba
ID: 2491215 • Letter: R
Question
Required: 1. Prepare a vertical analysis of Fantasy Football's 2015 and 2014 balance sheets. Express each amount as a percentage of total assets for that year. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) FANTASY FOOTBALL Balance Sheet For the Years Ended December 31, 2015 and 201 2015 2014 0 Amount Amount 0 Assets Current assets: Cash Accounts receivable Inventory Supplies 189,000 819,000 2,344,500 202,500 252,000 1,205,400 1,428,000 117,600 Long-term assets: Equipment 1,449,000 (504,000) $4,500,000 1,449,000 (252,000) $4,200,000 Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable 157,500 0 63,000 121,800 4,200 63,000 Long-term liabilities: Notes payable 1,386,000 1,386,000 Stockholders' equity: 945,000 1,948,500 4,500,000 945,000 1,680,000 $4,200,000 Common stock Retained earnings Total liabilities and stockholders' equity $Explanation / Answer
1
Vertical Analysis:
FANTASY FOOTBALL
Balance Sheet
For the years ended December 31, 2015 and 2014
2015
2014
Amount
%
Amount
%
Formula:
A
(A / 4500000)
B
(B / 4200000)
Assets
Current Assets:
Cash
$ 189,000
4.2%
$ 252,000
6.0%
Accounts Receivables
$ 819,000
18.2%
$ 1,205,400
28.7%
Inventory
$ 2,344,500
52.1%
$ 1,428,000
34.0%
Supplies
$ 202,500
4.5%
$ 117,600
2.8%
Long Term assets:
Equipment
$ 1,449,000
32.2%
$ 1,449,000
34.5%
Less: Accumulated depreciation
$ (504,000)
-11.2%
$ (252,000)
-6.0%
Total Assets
$ 4,500,000
100.0%
$ 4,200,000
100.0%
Liabilities and stockholder's Equity
Current Liabilities:
Accounts Payable
$ 157,500
3.5%
$ 121,800
2.9%
Interest Payable
$ -
0.0%
$ 4,200
0.1%
Income Tax Payable
$ 63,000
1.4%
$ 63,000
1.5%
Long term Liabilities:
Notes Payable
$ 1,386,000
30.8%
$ 1,386,000
33.0%
Stockholder's Equity :
Common Stock
$ 945,000
21.0%
$ 945,000
22.5%
Retained Earnings
$ 1,948,500
43.3%
$ 1,680,000
40.0%
Total Liabilities and stock holder's Equity
$ 4,500,000
100.0%
$ 4,200,000
100.0%
2
Horizontal Analysis:
FANTASY FOOTBALL
Balance Sheet
For the years ended December 31, 2015 and 2014
Year
Increase (Decrease)
2015
2014
Amount
%
A
B
C= A-B
C/B
Assets
Current Assets:
Cash
$ 189,000
$ 252,000
$ (63,000)
-25.0%
Accounts Receivables
$ 819,000
$ 1,205,400
$ (386,400)
-32.1%
Inventory
$ 2,344,500
$ 1,428,000
$ 916,500
64.2%
Supplies
$ 202,500
$ 117,600
$ 84,900
72.2%
Long Term assets:
Equipment
$ 1,449,000
$ 1,449,000
$ -
0.0%
Less: Accumulated depreciation
$ (504,000)
$ (252,000)
$ (252,000)
100.0%
Total Assets
$ 4,500,000
$ 4,200,000
$ 300,000
7.1%
Liabilities and stockholder's Equity
Current Liabilities:
Accounts Payable
$ 157,500
$ 121,800
$ 35,700
29.3%
Interest Payable
$ -
$ 4,200
$ (4,200)
-100.0%
Income Tax Payable
$ 63,000
$ 63,000
$ -
0.0%
Long term Liabilities:
Notes Payable
$ 1,386,000
$ 1,386,000
$ -
0.0%
Stockholder's Equity :
Common Stock
$ 945,000
$ 945,000
$ -
0.0%
Retained Earnings
$ 1,948,500
$ 1,680,000
$ 268,500
16.0%
Total Liabilities and stock holder's Equity
$ 4,500,000
$ 4,200,000
$ 300,000
7.1%
1
Vertical Analysis:
FANTASY FOOTBALL
Balance Sheet
For the years ended December 31, 2015 and 2014
2015
2014
Amount
%
Amount
%
Formula:
A
(A / 4500000)
B
(B / 4200000)
Assets
Current Assets:
Cash
$ 189,000
4.2%
$ 252,000
6.0%
Accounts Receivables
$ 819,000
18.2%
$ 1,205,400
28.7%
Inventory
$ 2,344,500
52.1%
$ 1,428,000
34.0%
Supplies
$ 202,500
4.5%
$ 117,600
2.8%
Long Term assets:
Equipment
$ 1,449,000
32.2%
$ 1,449,000
34.5%
Less: Accumulated depreciation
$ (504,000)
-11.2%
$ (252,000)
-6.0%
Total Assets
$ 4,500,000
100.0%
$ 4,200,000
100.0%
Liabilities and stockholder's Equity
Current Liabilities:
Accounts Payable
$ 157,500
3.5%
$ 121,800
2.9%
Interest Payable
$ -
0.0%
$ 4,200
0.1%
Income Tax Payable
$ 63,000
1.4%
$ 63,000
1.5%
Long term Liabilities:
Notes Payable
$ 1,386,000
30.8%
$ 1,386,000
33.0%
Stockholder's Equity :
Common Stock
$ 945,000
21.0%
$ 945,000
22.5%
Retained Earnings
$ 1,948,500
43.3%
$ 1,680,000
40.0%
Total Liabilities and stock holder's Equity
$ 4,500,000
100.0%
$ 4,200,000
100.0%
2
Horizontal Analysis:
FANTASY FOOTBALL
Balance Sheet
For the years ended December 31, 2015 and 2014
Year
Increase (Decrease)
2015
2014
Amount
%
A
B
C= A-B
C/B
Assets
Current Assets:
Cash
$ 189,000
$ 252,000
$ (63,000)
-25.0%
Accounts Receivables
$ 819,000
$ 1,205,400
$ (386,400)
-32.1%
Inventory
$ 2,344,500
$ 1,428,000
$ 916,500
64.2%
Supplies
$ 202,500
$ 117,600
$ 84,900
72.2%
Long Term assets:
Equipment
$ 1,449,000
$ 1,449,000
$ -
0.0%
Less: Accumulated depreciation
$ (504,000)
$ (252,000)
$ (252,000)
100.0%
Total Assets
$ 4,500,000
$ 4,200,000
$ 300,000
7.1%
Liabilities and stockholder's Equity
Current Liabilities:
Accounts Payable
$ 157,500
$ 121,800
$ 35,700
29.3%
Interest Payable
$ -
$ 4,200
$ (4,200)
-100.0%
Income Tax Payable
$ 63,000
$ 63,000
$ -
0.0%
Long term Liabilities:
Notes Payable
$ 1,386,000
$ 1,386,000
$ -
0.0%
Stockholder's Equity :
Common Stock
$ 945,000
$ 945,000
$ -
0.0%
Retained Earnings
$ 1,948,500
$ 1,680,000
$ 268,500
16.0%
Total Liabilities and stock holder's Equity
$ 4,500,000
$ 4,200,000
$ 300,000
7.1%
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